TSXV:EQ

Stock Analysis Report

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Executive Summary

EQ Inc., creates and targets customized audience segments using location-based behavior signals, advanced data analytics, and proprietary software in Canada, the United States, and internationally. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has EQ's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EQ is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EQ's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

EQ

3.7%

CA Interactive Media and Services

2.8%

CA Market


1 Year Return

55.3%

EQ

94.6%

CA Interactive Media and Services

-0.3%

CA Market

Return vs Industry: EQ underperformed the Canadian Interactive Media and Services industry which returned 106.9% over the past year.

Return vs Market: EQ exceeded the Canadian Market which returned -0.5% over the past year.


Shareholder returns

EQIndustryMarket
7 Day-1.5%3.7%2.8%
30 Day-0.8%12.7%10.0%
90 Day-9.0%38.8%5.7%
1 Year55.3%55.3%96.1%94.6%3.3%-0.3%
3 Year88.6%88.6%35.4%31.8%12.2%1.3%
5 Year1,930.8%1,930.8%8.6%2.4%49.1%26.2%

Long-Term Price Volatility Vs. Market

How volatile is EQ's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EQ undervalued compared to its fair value and its price relative to the market?

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQ (CA$1.32) is trading below our estimate of fair value (CA$2.57)

Significantly Below Fair Value: EQ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EQ is unprofitable, so we can't compare its PE Ratio to the CA Interactive Media and Services industry average.

PE vs Market: EQ is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EQ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EQ is overvalued based on its PB Ratio (14.2x) compared to the CA Interactive Media and Services industry average (8.7x).


Next Steps

Future Growth

How is EQ forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

30.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EQ's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if EQ's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EQ's revenue (30.4% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: EQ's revenue (30.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EQ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EQ performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQ is currently unprofitable.

Growing Profit Margin: EQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EQ is unprofitable, and losses have increased over the past 5 years at a rate of 3% per year.

Accelerating Growth: Unable to compare EQ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EQ is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (8.8%).


Return on Equity

High ROE: EQ has a negative Return on Equity (-54.56%), as it is currently unprofitable.


Next Steps

Financial Health

How is EQ's financial position?


Financial Position Analysis

Short Term Liabilities: EQ's short term assets (CA$8.0M) exceed its short term liabilities (CA$5.0M).

Long Term Liabilities: EQ's short term assets (CA$8.0M) exceed its long term liabilities (CA$116.0K).


Debt to Equity History and Analysis

Debt Level: EQ's debt to equity ratio (37.4%) is considered satisfactory.

Reducing Debt: EQ had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EQ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EQ has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is EQ current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EQ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EQ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EQ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EQ's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Geoff Rotstein (51 yo)

14.83yrs

Tenure

CA$275,910

Compensation

Mr. Geoffrey Rotstein, also known as Geoff, serves as an Independent Director at Cann-Is Capital Corp. since August 14, 2017. Mr. Rotstein has been the Chief Executive Officer of EQ Inc. (formerly known as...


CEO Compensation Analysis

Compensation vs Market: Geoff 's total compensation ($USD211.97K) is about average for companies of similar size in the Canadian market ($USD166.12K).

Compensation vs Earnings: Geoff 's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Rotstein
CEO, President & Director14.83yrsCA$275.91k5.49%
CA$ 4.3m
Peter Kanniah
CFO & Corporate Secretary5.67yrsCA$100.31kno data
Joe Strolz
Chief Operating Officer0.67yrno datano data
Dilshan Kathriarachchi
Chief Technology Officer6.75yrsCA$200.73k2.52%
CA$ 2.0m

6.2yrs

Average Tenure

Experienced Management: EQ's management team is seasoned and experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.1%.


Top Shareholders

Company Information

EQ Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EQ Inc.
  • Ticker: EQ
  • Exchange: TSXV
  • Founded:
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: CA$77.755m
  • Shares outstanding: 58.91m
  • Website: https://www.eqworks.com

Number of Employees


Location

  • EQ Inc.
  • 1235 Bay Street
  • Suite 401
  • Toronto
  • Ontario
  • M5R 3K4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQTSXV (TSX Venture Exchange)YesCommon SharesCACADOct 1996
CXJ1DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1996
CYPX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1996

Biography

EQ Inc., creates and targets customized audience segments using location-based behavior signals, advanced data analytics, and proprietary software in Canada, the United States, and internationally. The com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:31
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.